Domestic equity markets opened with losses on Thursday as investors remained cautious following a sharp rise in crude oil prices and escalating geopolitical tensions in West Asia.
The BSE Sensex dropped 239.95 points, or 0.31 per cent, to open at 76,515.10, while the NSE Nifty slipped 91.45 points, or 0.38 per cent, to 23,904.80 in early trading.
Most sectoral indices traded in negative territory during the opening session.
The Nifty Oil & Gas index recorded the steepest decline of nearly one per cent, while Pharma, Realty, PSU Bank, Healthcare, Cement and Private Bank stocks also came under selling pressure.
The FMCG and MidSmall IT & Telecom indices bucked the broader trend and registered modest gains.
Dr Reddy’s Laboratories, IndiGo, Infosys, Bajaj Finance, Cipla, Tata Steel and Larsen & Toubro featured among the biggest losers on the Nifty, with shares falling by up to four per cent.
According to market analysts, the latest escalation in the West Asia conflict, including reported attacks by the Houthis on Saudi Arabian tankers in the Red Sea, has intensified concerns over global energy supplies.
As a result, Brent crude rose above 96 dollars per barrel, increasing worries about India’s dependence on imported oil.
Experts said persistently high crude prices could add pressure on inflation and the broader economy, making investors increasingly cautious in the short term.
Trading across Asian markets remained mixed, with Japan’s Nikkei edging higher and Hong Kong’s Hang Seng and South Korea’s KOSPI posting solid gains.
In contrast, Taiwan’s Weighted Index and Singapore’s Straits Times traded lower.
Overnight, US equities also ended in the red, as both the S&P 500 and Nasdaq closed with losses.
Despite the prevailing uncertainty, analysts believe the ongoing market correction could provide long-term investors with an opportunity to accumulate fundamentally strong stocks at more reasonable valuations.
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